Sanstar Limited’s initial public offering (IPO) is creating a buzz in the stock market. The company’s IPO, which opened for bidding on Friday, has seen strong investor interest, leading to a jump in the grey market premium (GMP).
GMP is an unofficial estimate of a stock’s price in the grey market, which is a trading platform operating outside of the stock exchange. It’s important to remember that GMP is not a guarantee of the actual listing price, but it can be an indicator of investor sentiment.
On day 2 of the bidding process, Sanstar’s IPO received applications for over 6.5 times the number of shares offered. This strong subscription is reflected in the rising GMP. As of Monday morning, the GMP for Sanstar shares is ₹46, which is ₹4 higher than Friday’s figure.
Interestingly, it’s the retail investors and non-institutional investors (NII) who are driving the demand for Sanstar’s IPO. The retail investor portion is already over 6 times subscribed, while the NII segment has seen a whopping 15-fold oversubscription.
Should You Apply?
The strong subscription status and rising GMP are positive signs for Sanstar’s IPO. However, this shouldn’t be the only factor influencing your decision to apply. Consider these additional points:
- Company Financials: Carefully review Sanstar’s financial statements and future growth plans.
- Industry Outlook: Research the overall health of the plant-based speciality products and ingredient solutions industry.
- IPO Price Band: Sanstar’s IPO price is set between ₹90 and ₹95 per share. Compare this to the estimated listing price based on GMP to understand potential gains.
Remember: IPOs involve inherent risks. Invest only what you’re comfortable losing.
Key Dates to Remember
- Bidding for Sanstar’s IPO closes on July 23rd, 2024.
- Allotment of shares is expected on July 24th, 2024.
- Listing on the stock exchange is anticipated on July 26th, 2024.
Do your research, consider your investment goals, and make an informed decision before applying for Sanstar’s IPO.
